Fisker is still likely to be rescued by a Chinese savior, but it won’t be Geely. Reuters is reporting that Fisker’s outstanding obligations to the Department of Energy have scared off the Chinese auto maker, leaving Dongfeng as the sole suitor for the beleagured EV maker.
Tesla announced plans to pay down their $465 million dollar Department of Energy loan in 5 years or less, as Tesla seeks to achieve profitability.
Workers at an LG Chem plant in Holland, Michigan have already been put on furlough before a single battery has come off the line. Workers have three weeks of paid “work”, and one week off unpaid at the $300 million plant.
Viewers of last night’s Presidential debate may have caught Mitt Romney bad-mouthing Tesla and Fisker during his remarks. Meanwhile, Tesla’s new prospectus shows that they’re hardly out of the woods yet, financially speaking.
Tesla Motors has almost used up funds from a Department of Energy loan program – but the startup car maker also says that they’ll start paying back the money at the end of 2012.
Coda Automotive withdrew a Department of Energy loan application after two years of waiting. The $334 million loan was supposed to have gone towards establishing an assembly plant in Columbus, Ohio, but for now, production will continue in China.
Responding to TTAC commentator Ohsnapback, Ford’s Communications rep defended his employer’s turnaround plan. “At Ford we have never said that we have won the battle already,” Jay Ward wrote. “Just that we are making considerable progress against our plan. You are right that the job is not done, but the evidence so far is overwhealmingly [sic] positive.” So far, so PR. And then . . . “We are managing our debt and working hard to pay it off. We are also going to pay back our loans unlike other companies (not just automotive – how about the banks while we are on the subject).” It’s a blunt and entirely accurate appraisal of GM and Chrysler’s chances of returning the government’s $72 billion (plus) “investment” in the failed domestic automakers. Ward goes on to underline Ford’s official position that its $10 billion no-to-low interest, 25-year “retooling” loan from the Department of Energy does not constitute a government bailout. ” . . . we did shun bail out money. We accepted government loans available to all auto manufacturers both domestic and foreign. We have committed to paying these back and I fail to see how we can be critisised [sic] for that.” And just in case you thought the attack on GM and Chrysler’s mega-suckle was a slip of the tongue, Ward makes a second strafing run. “If everyone else pays back every penny that Uncle Sam has ‘loaned’ them, I will eat my Mustang and my Flex.” Jay’s cars are safe. His ability to post on TTAC without interference from The Glass House Gang? Not so much.
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